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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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24.10.2011
Accentuated decline in the press market and increased pressure from parallel
imports in Switzerland prompts new appraisal of Valora Group´s overall 2011
objectives - Valora Retail meanwhile is gaining market share in a challenging
environment.
The continuing decline in the market for press products became more accentuated
during the third quarter of 2011, resulting in significantly lower sales.
Despite the extensive adjustments the division has made to its cost structures
and its expansion into new business areas, it is now evident that Valora
Services´ results for the current financial year will no longer be able to
compensate for the shortfall in press turnover of 10 percent it has experienced
so far.
In addition, the current level of exchange rates between the Swiss franc and the
euro mean that the Valora Trade Switzerland business area now has to contend
with a high level of parallel imports by the retail sector and a general
reticence in consumer spending. This is a second factor weighing on the Valora
Group´s overall sales.
Valora´s Retail division, conversely, continues to perform well. Although
overall retail market sales volumes have contracted significantly, particularly
in Switzerland, where they declined by more than 4 percent during the third
quarter of 2011, Valora Retail Switzerland achieved year-on-year sales growth of
above 2 percent in the same period, thus demonstrating that it has so far
successfully overcome current market challenges. Declining press revenues have
been more than made up for by the increase in food sales. Progress achieved
through initiatives from the "Valora 4 Growth" strategy programme, such as
extending the agency business model and the introduction of a range of new
service offerings, is also making a positive contribution to the Retail
division´s performance.
Given the substantial adverse factors affecting the results of its Services and
Trade divisions, Valora now expects to achieve an operating profit (EBIT) for
the current financial year of some CHF 70 million, instead of an EBIT result of
at least CHF 81 million communicated hitherto. Valora will review its 2012
targets when the 2011 results have been finalised, based on the assumption that
trading conditions next year are unlikely to improve significantly and taking
into account the further acquisitions projected as part of the Group´s growth
strategy. As Thomas Vollmoeller, the Valora Group´s CEO, puts it, "We remain
committed to our growth strategy and the medium-term profitability objectives
inherent in it. Although the performance of the press market is unsatisfactory
for us, we remain confident that we will achieve our objective of generating an
EBIT margin of three percent next year."
Further inquiry note:
Investor Relations: Tel: +41 58 789 12 20
Mladen Tomic E-Mail: mladen.tomic@valora.com
Media Relations: Tel: +41 58 789 12 01
Stefania Misteli E-Mail: stefania.misteli@valora.com
end of announcement euro adhoc
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issuer: Valora Holding AG
Hofackerstrasse 40
CH-4132 Muttenz
phone: +41 61 467 20 20
FAX: +41 58 789 12 12
mail: info@valora.com
WWW: www.valora.com
sector: Retail
ISIN: CH0002088976
indexes:
stockmarkets: stock market: BX Berne eXchange, Main Standard: SIX Swiss Exchange
language: English